Which of the following taxes paid by Woodhaven Inc. can be deducted during 2018?
I.Special real estate tax assessment for upgrading the sewer.
II.State income taxes paid in 2018 when filing Woodhaven's 2017 corporate return tax return.

Question

Which of the following taxes paid by Woodhaven Inc. can be deducted during 2018?
I.Special real estate tax assessment for upgrading the sewer.
II.State income taxes paid in 2018 when filing Woodhaven's 2017 corporate return tax return.
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Quizplus · Accepted Answer

Statement I refers to a special assessment tax for upgrading the sewer, which is not deductible as a business expense. However, statement II refers to state income taxes paid in 2018 while filing Woodhaven's 2017 corporate tax return, which can be deducted as a business expense in 2018. Therefore, only statement II is correct.

Which of the Following Taxes Paid by Woodhaven Inc